Hey now. I'm back with
another trading system review. In this installment I will be testing
this trading system from the FXAccurate channel that claims to
have a 98% winning rate, and we will find out how the most
accurate buy sell indicator performs over 100 consecutive trades. Just be sure to watch until the end
where I give my five optimization tips. And if this content is for you just crush
that subscribe button better than this ladies landing.
I call this system The Non Sequitur.
And like most trading systems, it can be applied to Forex,
options, stocks, cryptos, indices, or any instrument that has significant
volume and market participants. This strategy uses three
free TradingView indicators. As always links and settings to all
indicators are listed in the description. The first indicator is the
Dzwine Trend Indicator A-V2 per the system author. The EMA
length will be set to 52, and the smoothing EMA length to 10. This study takes two interpretations of
a moving average. And in this system, it will be used for entry confirmation. The second free TradingView indicator is
our old and dear friend the SuperTrend. This system requires the ATR period to
be set to nine and the ATR multiplier configured to 3.9. The SuperTrend
will provide our signals for entry. The third and final study to put on
the chart is the popular Qualitative Quantitative Estimation or QQE Mod. This indicator incorporates
data from the RSI and the ATR in an attempt to identify trending
and consolidating conditions.
This indicator will provide
us with entry confirmations. Let's go over entry criteria and review
some examples as always system rules and details are listed in
the description below. This chart is Aussie versus
the US dollar one-hour candles. The rules to enter a long on
the non-sequitur are: first. The QQE Mod must show a blue bar. Second, the Trend Indicator
must be green.
Finally, we are looking for a
SuperTrend to buy signal. All the rules are met on this
candle. This is our trigger. We place our stop below the Dzwine
Trend Indicator and target one to two. And this one hits our
target. If you enjoy this content, make sure to click that like button.
I have one more long example. The QQE mod is blue. The
Trend Indicator is green, and finally the SuperTrend
gives a buy signal. Everything converges on this
candle. This is our trigger candle. The stop is placed below
the Trend Indicator ribbon, and one to two is our target.
And this one hits one to two. Now we flip to shorts. This is
what I will test for shorts. First, the QQE Mod must provide
a red bar. Second, the Dzwine indicator must be red. Finally, the SuperTrend study
must show a sell signal. Our three rules are met when this
candle closes and serves as our trigger. We place our stop above the Trend
Indicator and target one to two. And this one hits our target. I'm going to show you one more
quick short example.
First, the QQE MOD histogram is red. Second, the Dzwine trend
indicator is red. Finally, there is a SuperTrend sell signal. All their criteria is met
on this trigger candle. The stop is placed above
the trend indicator ribbon, and the target is one to two.
And this setup hits our target. I'm going to give you some great ideas
on how we can make this system better along with a Traders Landing score.
And now it's time to do what I do. If you enjoy this content, please
hit the like button. Remember, this is just 100 tests on one instrument. If you are thinking of using this system, please do all the required testing and
be sure to let our community know what you discover. This test was done on Aussie versus
the U S dollar one-hour candles. It took two months short of two years to
find the 100 setups and most wins in a row were six. Most consecutive
losses turned out to be eight. The winning percentage was 43%, which is not bad for a
one to two risk to reward. If all the trades were
taken risking 2% per entry, the gross gain on account
was a healthy 52%, but I have five specific ideas on
how to make this system better.
You can see the equity curve here.
It gets you into the green fast, and then consolidated
for about half the test. This could be mitigated by moving
the stop to break even at one-to-one. In that case, set ups like this one would
have been profitable, thus blunting, the downward force of the account balance. What score would you give this strategy?
Let me know in the comments below. I give this system a Trader's
Landing score of six, because while the system was
profitable over the 100 tests, the indicators do not seem to follow
each other. Hence the name Non Sequitur, and I will get into that now.
Remember the enemy of great is good. I have five ideas on how we can improve
this system. Look at this chart. Many times during the test, I noticed the stop being hit only to
move in the direction of the trade immediately after.
You can see
here by optimizing the stops, these trades could have
been either profitable or
exited at break even. Second, the signals the system gives off like
most systems and consolidation turn out to be losers. Look at this chart where
there are three consecutive losses. The first thing I thought of to filter
this out was to incorporate the Triple SuperTrend strategy like I used in
this video with fantastic results. Furthermore, this particular combination of indicators
has trouble getting you into large moves to often. Look at this chart where
the QQ Mod filters out this huge move.
This happened too often and indicates
either the indicator settings need to be tweaked or another indicator
altogether should be used. Following up to the previous
point of changing the indicators. The HalfTrend indicator seems to work
well in this setup where the QQE misses this entry. Four, on this setup where the Dzwine
Trend Indicator misses this move. This system just barely
misses many large moves. That is why it must be
optimized. In addition, I noticed during the test
that the gain on account, most likely would have been significantly
increased by using a dynamic take profit system. On this chart, you can see exiting on the buy signal of
this short would have yielded a risk to reward of 3.22. And on this chart, you could have walked away with
a fantastic four and a half. Check out this playlist to see more
profitable systems. And have a great day, because you deserve it..